How to Use Your Credit Card When Travelling: The Best No FX Fee Cards in Canada
Oct 28, 2024
Written by
Written by
Brianna Harrison (Credit Card & Travel Writer)
Brianna Harrison (Credit Card & Travel Writer)
Table of contents
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Title
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Imagine this scenario: you travel abroad and use your Canadian credit card to earn points on everything you buy because carrying cash can be scary and dangerous. But when you get back home, you realize you were charged extra fees on every purchase on top of the exchange rate.
Most credit cards charge foreign transaction fees when you’re out of the country, which can add up quickly. If you don’t want these hefty fees just for spending money in another country, we recommend using a credit card with no FX fees. Oftentimes, these cards come with other great benefits like lounge access and travel insurance, which is fitting given the card's purpose.
In this post, we’ll discuss the best way to pay for things while travelling abroad–a no-fee credit card that earns you rewards and eliminates the 2.5% or 3% surcharge on each purchase.
How Can You Use a Credit Card While Travelling?
Most credit cards charge a 2.5% to 3% fee on purchases outside your home country. Even some of the best Canadian credit cards, like the American Express Cobalt, charge a fee to use it outside of Canada.
Using a regular credit card in another country comes with two fees: the exchange rate of the currency + the 2.5% to 3% surcharge. The exchange rate is typically around 1% of the purchase price, usually charged by the credit card payment processor (Visa, Mastercard, or American Express).
On the flip side, no foreign exchange fee credit cards allow you to use your card anywhere in the world without charging you that 2.5% to 3% fee. This saves you a lot of money, and you can even earn rewards on all your purchases. Let's be honest–we tend to spend a lot while travelling, so why not get rewarded for these purchases?
Using a no-fx fee card also saves you the ATM fees for withdrawing cash in a foreign country. You’ll save:
The foreign exchange fee (1% to 3%)
Foreign ATM fee ($2 to $5 per withdrawal)
ATM surcharge ($1 to $5)
Currency conversion fees (usually 1%)
There are a few downsides to no FX fee credit cards, which we’ll get into later, but having one is a no-brainer while travelling.
Note that Canadian credit cards are not universally accepted everywhere, so you should take out some cash just in case.
What to Know About No FX Fee Cards
No foreign transaction fee credit cards are so useful, but there are a few things you’ll need to keep in mind if it’s your first time using a no FX fee card:
It is possible that after a few purchases outside the country, your card issuer may think they are fraudulent (this happened to one of our Chexy staff!). If you don’t have a SIM card, unlocking your credit card can be very challenging.
If you’re travelling to Europe (or any other country), always pay in the native currency. I.e., on the card machine, select “Pay in Euro,” then tap or insert your card. If you choose the CAD option, you could pay more when the exchange rate kicks in.
Best No FX Fee Credit Cards in Canada
Along with avoiding the FX fees, these four credit cards allow you to earn rewards on all your purchases abroad. Some also come with sweet travel perks, like airport lounge access and travel insurance.
These are four of the best Canadian credit cards with no foreign exchange fees:
Scotiabank Gold American Express Card
Best for: Earning points on everyday purchases
Annual fee: $120
Interest rate: 20.99% on purchases and 22.99% on cash advances
Income requirement: $12,000
An award-winning credit card, the Scotiabank Gold American Express Card is at the top of our list due to the many points you can earn, plus multiple travel benefits. It’s part of the Scene+ rewards program, earning you up to 6 points per dollar on everyday purchases. You can earn:
6x the points at eligible grocery stores
5x the points on dining, food delivery, other grocery stores, and Cineplex purchases
3x the points on gas, transit, and eligible streaming services
1x the points on everything else
With this card, you get a preferred discount on the Priority Pass airport lounge membership, meaning you’ll pay only US$35 per lounge visit, whether you’re travelling in business class or economy.
Other benefits include:
Access to Amex Offers and Experiences
Book and redeem points through Scene+ Travel
24/7 concierge service
Travel insurance, including travel emergency medical and flight delay insurance
Scotiabank Platinum American Express Card
Best for: Airport lounge access
Annual fee: $399
Interest rate: 9.99% on purchases and cash advances
Income requirement: $12,000
Another amazing travel credit card, the Scotiabank Platinum American Express Card is perfect for you if you value airport lounge access. You’ll get ten free access passes to Priority Pass and Plaza Premium lounges (that’s 12,000+ lounges worldwide!) each year.
A few other benefits include:
Access to American Express Experiences and Offers
Premium concierge services
Hertz #1 Club Gold Membership
Access to Scene+ Travel
This credit card is also part of the Scene+ program, earning you:
3 Scene+ points per $1 spent on hotel and car rental bookings through Scene+ Travel
2 Scene+ points per every $1 spent on eligible purchases.
Scotiabank Passport Visa Infinite Card
Best for: Airport lounge access and Visa Infinite benefits
Annual fee: $150
Interest rate: $20.99% on purchases and 20.99% on cash advances
Income requirement: $60,000 personal or $100,000 household
Another award-winning travel credit card, the Scotiabank Passport Visa Infinite Card is one of the best for Visa Infinite benefits, travel insurance, and earning points with the Scene+ program.
It gets you six free airport lounge access passes per year through the Visa Airport Companion Program membership, plus access to exclusive benefits through the Visa Infinite program.
As part of the Scene+ program, you can earn:
3x the points at participating grocery stores
2x the points on dining, other grocery stores, entertainment, and transit
1x the points on everything else
Home Trust Preferred Visa
Best for: Earning cashback with no fees
Annual fee: $0
Interest rate: 21.99%
Income requirement: N/A
The Home Trust Preferred Visa is another great choice to use abroad with no foreign transaction fees. It is accepted in more than 200 countries, with no annual fee or minimum income requirement.
It earns you 1% cash back on all purchases with no spending cap. Let’s take a look at how much cash back you could earn:
If you spend $4,000 a month, you’ll earn $40 in cash back every month. By the end of the year, you’ll have earned $480–which could be put towards your next vacation!
Another great benefit of this card is guaranteed hotel reservations anywhere in the world. Use this card to book your room, and it will be held for you even if you arrive late.
Note that this credit card is not available for Quebec residents.
Best Prepaid No FX Fee Credit Cards
If you don’t want to go through the process of applying for a credit card and undergoing a hard credit check, or if you don’t qualify for one of the cards above, you can easily get a prepaid no FX fee credit card to take on your next trip.
These cards don’t have high annual fees or minimum income requirements, making them accessible to anyone–even newcomers to Canada. While we don’t recommend using these prepaid cards to pay your rent, they are great for saving that 2.5% to 3% FX fee on your purchases abroad.
KOHO Extra
KOHO is known for its lineup of prepaid cards that earn you cashback on everyday spending. They have Essential, Extra, and Everything plans, ranging from $0 to $19 per month. We’ll focus on the Extra plan, which earns you cash back and interest, and has no FX fees.
KOHO’s Extra prepaid card will cost you $9 per month, but the benefits are worth the monthly fee if you spend a lot or have a high balance in your account.
With this card, you earn:
1.5% cash back on groceries, food and drink, and transportation
0.25% cash back on everything else
Up to 5% extra cash back at select merchants
5% interest on your balance
Some other great perks include free credit score checks, instant and unlimited Interac e-Transfers, and access to their credit building service for $7 per month.
Interested in building your credit? When you rent with Chexy, you can opt into our Credit Builder for free. It’s way more worth it, in our opinion. ;)
Wise
Wise is one of the top platforms for spending money abroad. With Wise, you can open multiple currency accounts and move money from your main Canadian account into whichever currency you need while travelling.
For example, if you’re travelling to Spain, you can open a EUR account and convert CAD to EUR for a very low fee.
The Wise prepaid card is free. It doesn’t earn you rewards, but there are multiple benefits, including:
No exchange rate markups
No high transaction fees
Two free ATM withdrawals up to CAD $350 per month
EQ Bank Card
The EQ Bank Card is one of the lowest-fee prepaid credit cards in Canada. Unlike other major banks, you won’t be charged FX fees, ATM fees, monthly, or other hidden fees.
Plus, you’ll earn 0.5% cash back on every purchase. Whereas most cash-back credit cards pay out your earnings once a year, EQ Bank pays monthly.
Wealthsimple Cash Card
Wealthsimple is known for its self-directed investing, crypto, mortgages, and the Cash Card, which earns you a high interest on your balance.
The Wealthsimple Cash Card earns you varying amounts of interest, depending on your balance:
$1+: 2.75% interest
$100,000+: 3.25% interest
$500,000+: 3.75% interest
Some other cool benefits include:
Investor rewards of 1% back in stock, crypto, or cash every time you spend
0.5% more interest when you connect direct deposit
And, of course, the Wealthsimple Cash foreign exchange fee is 0% when using it abroad.
If you travel often and are a renter in Canada, consider applying for one of the three Scotiabank no-FX fee credit cards mentioned above. Not only do they save you the 2.5% fee abroad, but you can use them to earn Scene+ points on your rent payments with Chexy. The money saved plus points earned could get you free flights, travel upgrades, and more.
Note: Chexy does not accept rent payments made with Mastercard.
Subscribe to our newsletter below for up-to-date credit card, travel, and rental content.
Imagine this scenario: you travel abroad and use your Canadian credit card to earn points on everything you buy because carrying cash can be scary and dangerous. But when you get back home, you realize you were charged extra fees on every purchase on top of the exchange rate.
Most credit cards charge foreign transaction fees when you’re out of the country, which can add up quickly. If you don’t want these hefty fees just for spending money in another country, we recommend using a credit card with no FX fees. Oftentimes, these cards come with other great benefits like lounge access and travel insurance, which is fitting given the card's purpose.
In this post, we’ll discuss the best way to pay for things while travelling abroad–a no-fee credit card that earns you rewards and eliminates the 2.5% or 3% surcharge on each purchase.
How Can You Use a Credit Card While Travelling?
Most credit cards charge a 2.5% to 3% fee on purchases outside your home country. Even some of the best Canadian credit cards, like the American Express Cobalt, charge a fee to use it outside of Canada.
Using a regular credit card in another country comes with two fees: the exchange rate of the currency + the 2.5% to 3% surcharge. The exchange rate is typically around 1% of the purchase price, usually charged by the credit card payment processor (Visa, Mastercard, or American Express).
On the flip side, no foreign exchange fee credit cards allow you to use your card anywhere in the world without charging you that 2.5% to 3% fee. This saves you a lot of money, and you can even earn rewards on all your purchases. Let's be honest–we tend to spend a lot while travelling, so why not get rewarded for these purchases?
Using a no-fx fee card also saves you the ATM fees for withdrawing cash in a foreign country. You’ll save:
The foreign exchange fee (1% to 3%)
Foreign ATM fee ($2 to $5 per withdrawal)
ATM surcharge ($1 to $5)
Currency conversion fees (usually 1%)
There are a few downsides to no FX fee credit cards, which we’ll get into later, but having one is a no-brainer while travelling.
Note that Canadian credit cards are not universally accepted everywhere, so you should take out some cash just in case.
What to Know About No FX Fee Cards
No foreign transaction fee credit cards are so useful, but there are a few things you’ll need to keep in mind if it’s your first time using a no FX fee card:
It is possible that after a few purchases outside the country, your card issuer may think they are fraudulent (this happened to one of our Chexy staff!). If you don’t have a SIM card, unlocking your credit card can be very challenging.
If you’re travelling to Europe (or any other country), always pay in the native currency. I.e., on the card machine, select “Pay in Euro,” then tap or insert your card. If you choose the CAD option, you could pay more when the exchange rate kicks in.
Best No FX Fee Credit Cards in Canada
Along with avoiding the FX fees, these four credit cards allow you to earn rewards on all your purchases abroad. Some also come with sweet travel perks, like airport lounge access and travel insurance.
These are four of the best Canadian credit cards with no foreign exchange fees:
Scotiabank Gold American Express Card
Best for: Earning points on everyday purchases
Annual fee: $120
Interest rate: 20.99% on purchases and 22.99% on cash advances
Income requirement: $12,000
An award-winning credit card, the Scotiabank Gold American Express Card is at the top of our list due to the many points you can earn, plus multiple travel benefits. It’s part of the Scene+ rewards program, earning you up to 6 points per dollar on everyday purchases. You can earn:
6x the points at eligible grocery stores
5x the points on dining, food delivery, other grocery stores, and Cineplex purchases
3x the points on gas, transit, and eligible streaming services
1x the points on everything else
With this card, you get a preferred discount on the Priority Pass airport lounge membership, meaning you’ll pay only US$35 per lounge visit, whether you’re travelling in business class or economy.
Other benefits include:
Access to Amex Offers and Experiences
Book and redeem points through Scene+ Travel
24/7 concierge service
Travel insurance, including travel emergency medical and flight delay insurance
Scotiabank Platinum American Express Card
Best for: Airport lounge access
Annual fee: $399
Interest rate: 9.99% on purchases and cash advances
Income requirement: $12,000
Another amazing travel credit card, the Scotiabank Platinum American Express Card is perfect for you if you value airport lounge access. You’ll get ten free access passes to Priority Pass and Plaza Premium lounges (that’s 12,000+ lounges worldwide!) each year.
A few other benefits include:
Access to American Express Experiences and Offers
Premium concierge services
Hertz #1 Club Gold Membership
Access to Scene+ Travel
This credit card is also part of the Scene+ program, earning you:
3 Scene+ points per $1 spent on hotel and car rental bookings through Scene+ Travel
2 Scene+ points per every $1 spent on eligible purchases.
Scotiabank Passport Visa Infinite Card
Best for: Airport lounge access and Visa Infinite benefits
Annual fee: $150
Interest rate: $20.99% on purchases and 20.99% on cash advances
Income requirement: $60,000 personal or $100,000 household
Another award-winning travel credit card, the Scotiabank Passport Visa Infinite Card is one of the best for Visa Infinite benefits, travel insurance, and earning points with the Scene+ program.
It gets you six free airport lounge access passes per year through the Visa Airport Companion Program membership, plus access to exclusive benefits through the Visa Infinite program.
As part of the Scene+ program, you can earn:
3x the points at participating grocery stores
2x the points on dining, other grocery stores, entertainment, and transit
1x the points on everything else
Home Trust Preferred Visa
Best for: Earning cashback with no fees
Annual fee: $0
Interest rate: 21.99%
Income requirement: N/A
The Home Trust Preferred Visa is another great choice to use abroad with no foreign transaction fees. It is accepted in more than 200 countries, with no annual fee or minimum income requirement.
It earns you 1% cash back on all purchases with no spending cap. Let’s take a look at how much cash back you could earn:
If you spend $4,000 a month, you’ll earn $40 in cash back every month. By the end of the year, you’ll have earned $480–which could be put towards your next vacation!
Another great benefit of this card is guaranteed hotel reservations anywhere in the world. Use this card to book your room, and it will be held for you even if you arrive late.
Note that this credit card is not available for Quebec residents.
Best Prepaid No FX Fee Credit Cards
If you don’t want to go through the process of applying for a credit card and undergoing a hard credit check, or if you don’t qualify for one of the cards above, you can easily get a prepaid no FX fee credit card to take on your next trip.
These cards don’t have high annual fees or minimum income requirements, making them accessible to anyone–even newcomers to Canada. While we don’t recommend using these prepaid cards to pay your rent, they are great for saving that 2.5% to 3% FX fee on your purchases abroad.
KOHO Extra
KOHO is known for its lineup of prepaid cards that earn you cashback on everyday spending. They have Essential, Extra, and Everything plans, ranging from $0 to $19 per month. We’ll focus on the Extra plan, which earns you cash back and interest, and has no FX fees.
KOHO’s Extra prepaid card will cost you $9 per month, but the benefits are worth the monthly fee if you spend a lot or have a high balance in your account.
With this card, you earn:
1.5% cash back on groceries, food and drink, and transportation
0.25% cash back on everything else
Up to 5% extra cash back at select merchants
5% interest on your balance
Some other great perks include free credit score checks, instant and unlimited Interac e-Transfers, and access to their credit building service for $7 per month.
Interested in building your credit? When you rent with Chexy, you can opt into our Credit Builder for free. It’s way more worth it, in our opinion. ;)
Wise
Wise is one of the top platforms for spending money abroad. With Wise, you can open multiple currency accounts and move money from your main Canadian account into whichever currency you need while travelling.
For example, if you’re travelling to Spain, you can open a EUR account and convert CAD to EUR for a very low fee.
The Wise prepaid card is free. It doesn’t earn you rewards, but there are multiple benefits, including:
No exchange rate markups
No high transaction fees
Two free ATM withdrawals up to CAD $350 per month
EQ Bank Card
The EQ Bank Card is one of the lowest-fee prepaid credit cards in Canada. Unlike other major banks, you won’t be charged FX fees, ATM fees, monthly, or other hidden fees.
Plus, you’ll earn 0.5% cash back on every purchase. Whereas most cash-back credit cards pay out your earnings once a year, EQ Bank pays monthly.
Wealthsimple Cash Card
Wealthsimple is known for its self-directed investing, crypto, mortgages, and the Cash Card, which earns you a high interest on your balance.
The Wealthsimple Cash Card earns you varying amounts of interest, depending on your balance:
$1+: 2.75% interest
$100,000+: 3.25% interest
$500,000+: 3.75% interest
Some other cool benefits include:
Investor rewards of 1% back in stock, crypto, or cash every time you spend
0.5% more interest when you connect direct deposit
And, of course, the Wealthsimple Cash foreign exchange fee is 0% when using it abroad.
If you travel often and are a renter in Canada, consider applying for one of the three Scotiabank no-FX fee credit cards mentioned above. Not only do they save you the 2.5% fee abroad, but you can use them to earn Scene+ points on your rent payments with Chexy. The money saved plus points earned could get you free flights, travel upgrades, and more.
Note: Chexy does not accept rent payments made with Mastercard.
Subscribe to our newsletter below for up-to-date credit card, travel, and rental content.